Tesla Faces Turmoil in Germany as Absenteeism Soars and Demand Drops

Tesla's (TSLA.US) automotive plant in Germany, the company's sole manufacturing facility in Europe, has seen a troubling increase in staff absences, garnering the attention of CEO Elon Musk. Musk announced an inquiry into this issue on the X platform, following a report from Germany's Handelsblatt indicating that absentee rates at the Grünheide plant surged to 17% in August. This figure stands at more than three times the average for Germany's automotive sector last year.

In recent months, production at the Grünheide plant has been halted multiple times, with Tesla citing protests against factory expansion and supply chain disruptions as reasons. The automaker is also facing a decline in demand, as reflected by a 16% drop in its European registrations for the first eight months of this year.

An internal meeting last week revealed that factory management has conducted house visits to employees on sick leave. However, this approach has been met with resistance, with some employees refusing entry and even threatening to involve law enforcement.

Dirk Schulze, a regional director of Germany’s largest industrial union IG Metall, criticized the home visit strategy as an "absurd action" to address the persistently high sickness rates. He cited worker reports of excessive workloads and pressure from management to work beyond capacity, affecting both ill and healthy employees.

The Grünheide facility employs approximately 12,000 workers and produced the Model Y, Europe's top-selling passenger vehicle last year.